The number of new orders to Germany’s manufacturing sector fell by 2.7% in July, according to a report published by German statistics office Destatis on Thursday, Sept. 5.
The month-on-month drop of 2.7% was visibly higher than 1.5% forecasted by analysts. The result is visibly lower than 2.7% increase in June.
The overall number of orders went down 5.6% year-on-year, in comparison to June’s 3.5%. The domestic orders fell 0.5%, while export orders decline was even stronger — 4.2%. However, big orders were up 0.5% on the month.
German GDP also fell by 0.1% in comparison to the first quarter of 2019. The annual growth rate for Germany is now down to 0.4%. According to the Financial Times, this is the slowest pace for the German economy in the last six years.
Other major economies in the EU are also slowing down. In Q2 2019, the United Kingdom’s GDP shrank 0.2% amid Brexit uncertainty and a manufacturing slump, while Italy registered zero growth in the same period.